Basic Policy

KYB conducts ESG management so as to continuously develop our business through manufacturing craftsmanship and contribute to the realization of an
affluent society as a corporation that has earned the trust of the global community.
Going forward, we will further increase the responsibilities of the companies in our supply chain to conduct efforts to uphold human rights, the prevention of child
labor and forced labor, responsible mineral procurement, and carbon neutrality. We naturally build partnerships with important suppliers, and also carry out our social responsibility while thoroughly enforcing our 11 basic purchasing policy and striving to contribute to the realization of a sustainable society.

KYB fulfills its corporate social responsibility and actively works towards maintaining the trust of society.
KYB achieves continue business development by means of manufacturing, and our suppliers are important partners in making products that contribute to constructing an affluent society.
KYB’s basic approach to supply is introduced below.

1. Supply activities with the aim of mutual existence and prosperity with suppliers

In our globally expanding supply activities, we aim towards equal business opportunities and fair and impartial transactions.
By sharing issues and objectives with our Suppliers, and by working together to strengthen our competitive power, we aim to create relationships where both parties benefit. We ensure that communication always goes both ways so as to resolve issues and achieve objectives.

2. Legal compliance

Supply activities are implemented with full legal compliance (Japanese Antitrust Act, subcontracting laws and related laws in each country and region) as a matter of course, and complete respect for traditional cultures and customs, as well as social rules.

3. Quality first

In order to deliver products that our clients can trust, we ask our suppliers to have preventative quality assurance systems in place, and to supply our company with 100% top quality articles.

4. Safety and health, human rights and labor

We promote supply activities where “Safety first” is the fundamental principle of management in the manufacturing workplace.
KYB has an interest in the human rights of its Suppliers, and promotes supply that maintains a positive working environment.

5. Continuous cost reduction activities

We are aiming towards reasonably priced supply.
We collect information about a wide range of new technologies, new materials, new products and new methods, etc., from our suppliers, which we pass on to the point of contact in related internal departments.
We also pursue activities with our suppliers as a business partner to reduce overall costs continuously.

6. Scheduled delivery

We cooperate with suppliers and relevant internal departments to reduce the lead-time in order to meet the client’s preferred deadline.

7. Care for the natural environment

As an environmentally friendly company, we promote ecological supply that prioritizes materials and products that respect the global environment.

8. Construction of global supply systems

In order to optimize supply at production bases around the world, KYB is increasing local procurement ratios and building up relationships of mutual trust with local suppliers. At the same time, KYB is building a global supply information network and systems that can respond to change.

9. Crisis management

An important part of risk management is crisis management, whereby provisions are in place for unexpected situations, such as earthquakes, fires, disaster and widespread outbreaks of disease, and we ask our suppliers to consider and implement preventative security in this regard.
When required, KYB provides information and support in various ways.

10. Management of confidential information

KYB maintains thorough confidentiality in line with internal regulations with regard to management information, business information and other trade secrets acquired through supply activities.

11. Prevention of corruption

KYB does not engage in giving, receiving or providing business entertainment or gifts with the purpose of maintaining or acquiring unjust profits or preferential treatment.

KYB holds the Purchasing Policy Briefing for the management positions of our suppliers in order for them to develop a better understanding of our corporate policies, purchasing policies, and quality policies.We recognizes and commends outstanding suppliers who have significantly contributed to Quality (Q), Cost (C), and Delivery (D) through shared challenges and goals with our company and suppliers in this event. It contributes to share the information by each other between KYB and our suppliers. We strive to increase mutual trust and build partnerships aiming for coexistence and mutual prosperity with suppliers.

KYB announced the Partnership Building Declaration in September of 2023. According to Japan’s Cabinet Office and the Ministry of Economy, Trade and Industry, a Partnership Building Declaration shows a company’s commitment to cooperation beyond the existing transaction relationships and scale and upholding desirable business practices aimed at coexistence and co-prosperity throughout the supply chain. KYB seeks to add value across the entire supply chain through coexistence and co-prosperity with suppliers and new partnerships.

Based on the Japanese government’s 2050 Carbon Neutral Declaration and the Glasgow Food and Climate Declaration agreed upon at COP26, KYB is aiming to become carbon neutral with a focus on the global environment in 2050. To reach our CO₂ reduction goals, we are engaging in emissions reduction initiatives such as reducing the environmental impacts of our products and manufacturing processes. We are working to fully comprehend current CO₂ emissions through supplier meeting to deepen our supplier's understanding, surveys of our suppliers, and working to provide them with the necessary information in a timely manner.

To avoid inadvertently providing funds to armed groups responsible for human rights violations, the KAYABA Group annually conducts an investigation with the cooperation of our suppliers, summarizes the results and reports to clients that request such information, in accordance with the Dodd-Frank Act.* Also, we quickly respond to client's inquiries after the report.
In addition to the above, expectations for ESG initiatives have triggered a trend toward the expansion of target minerals and areas, so we are conducting investigations in response to the addition of cobalt and mica to the list of target minerals. These two minerals are being investigated based on OECD Annex II*2 risks issued by the OECD.
Both investigations are based on the investigation tables published by the Responsible Minerals Initiative (RMI).

*1　The Dodd-Frank Act is a U.S. financial regulatory act that aims to indirectly cut off trade in mineral resources mined in the Democratic Republic of the Congo and nine neighboring countries because of concerns that these mineral resources are the source of funding for armed groups that are responsible for environmental destruction and human rights violations.
Target minerals: tin, tantalum, tungsten, gold
*2　OECD Annex II: Risks described in Annex II of the Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas. However, there are no regulatory compliance requirements. Risks include human rights violations, direct/indirect support for non-state armed groups, money laundering, etc.

In accordance with the U.K. Modern Slavery Act 2015, we annually release a statement on the KAYABA Group’s business activities and initiatives to prevent slave labor and human trafficking in our supply chain, including the abovementioned conflict mineral measures.
Going forward, while understanding the situation at our suppliers, we will cooperate with the relevant departments in continuing educational and enlightenment activities related to preventing human rights violations and slave labor.

Modern Slavery Act Transparency Statement for Fiscal Year 2023